Overview of Square Accounting

ONE UP automates your accounting by recording Square sales, refunds, deposits, and fees in ONE UP, each time your run a sync job from the Connected Apps panel.

For most sales transactions, ONE UP records invoices with with itemized lines for each product, and different types of customer payments depending on the payment method.

For refunds, ONE UP records expenses for the fees that are taken out of each deposit. Note: if we can't determine which bank the original payment was deposited to, we will not be able to create the expense for this refund. You should account for these transactions when synchronizing with your bank.

For deposits, ONE UP records a bank transfer from the "Square Holding Account" to the bank you have configured within Square.

For certain sales transactions that have occurred outside a known depositing period, ONE UP records them as sales receipts.

Sales Transactions and Payments

Sales Accounts and Accounts Receivable

The account that is used for sales is dependent on the account specified within the products contained within the sale. This account can be configured by editing the details of the products you sell through Square.

All Square sales are attributed to the generic "Square Customer" and will all use that customer's Accounts Receivable account.

Payments and Payment Methods

Square records sales for all payment methods, whether they are credit/debit cards processed through Square, or not. Here are the details for what happens in ONE UP for each payment method:

Credit Cards

Credit card sales are deposited to a special "Square Holding Account" to be deposited later into your bank deposit with the Square Deposit Sync (see below)

Cash

Cash sales are deposited to a special "Square Cash Register" account. These funds will remain here until you manually transfer them to your bank account using a Bank Transfer.

Gift Cards

When a gift card is sold to a customer, the funds are held in a "deferred income" account. When a gift card is used as payment for a sale, the money is removed fromt the deferred income account and posted to the sales account of the products contained in the sale.

Check / Other / Other Gift Card

These other payment methods are sent to the "Undeposited Funds" account. These funds will remain here until you manually transfer them to your real bank account using a Bank Deposit.

Square Deposits

Credit card sales are deposited to a special "Square Holding Account" when they are collected. Square normally does a deposit every day containing all undeposited sales.

Settlements from Square to your bank account are recorded in ONE UP as Bank Transfers, minus fees.

Square Fees

Square takes it's fees from your sales before depositing into your bank account. These fees are recorded in ONE UP as Expenses.

Other Transactions

Very rarely, Square can affect your bank account by crediting or debiting an amount. All of this activity is handled by ONE UP in the ways documented below:

Negative Adjustments, Service Fees, and Subscription Fees

These are accounted for with an Expense referencing the "Merchant Account Fees" account.

Positive Adjustments, Free Processing Credits, Service Fee Refunds, Redemption Codes, and Subscription Fee Refunds

These are accounted for with a Sales Receipt referencing the "Merchant Account Fees" account.

Balance Charges

These are accounted for with a Sales Receipt referencing the "Sales - Miscellaneous" account.

Hold Adjustments (hold applied)

These are accounted for with an Expense referencing the "Deferred Income" account.

Hold Adjustments (hold released)

These are accounted for with a Sales Receipt referencing the "Deferred Income" account.

Square Capital™ Advances

These are accounted for with a Sales Receipt referencing the "Other Current Liability" account.

Square Capital™ Payments

These are accounted for with an Expense referencing the "Other Current Liability" account.

Square Capital™ Reversed Payments

These are accounted for with a Sales Receipt referencing the "Other Current Liability" account.

Was this article helpful?
1 out of 1 found this helpful

Need more help? Ask an expert!

Click here to submit a support request to a ONE UP expert.